Unemployment Rate Sees Uptick in JuneThe unemployment rate across the United States marginally increased to 4.1% in June, up from the previous month’s rate of 4.0%. This change indicates a normalization of the job market towards more balanced conditions between labor demand and supply, although it remains at an historically low level. Yearly wage growth, excluding inflation, held steady at 3.9%, which the White House notes is higher than the 3.3% inflation rate observed in May.
The labor force participation rate showed a slight increase, but the overall number is influenced by retirement effects from an aging workforce. However the prime-age labor force participation rate, at 83.7%, reached a 22-year high and eclipsed its pre-pandemic level. Prime-age men’s participation rate, at 89.6%, is now tied for its highest level in over a decade, while the rate for prime-age women dropped marginally but remains elevated compared to pre-pandemic levels.
Data from the Current Population Survey (CPS), conducted by the Census Bureau, showed that 59.6% of private industries added jobs in June. Despite this, payroll gains were revised downward for April and May by a cumulative 111,000. The White House notes that this is consistent with a job market normalizing from overheated conditions, as seen in previous months.
In Virginia, the unemployment rate remained unchanged at 2.7%. The labor force decreased by 4,155 to 4,574,821, and the number of unemployed residents fell by 2,369 to 122,395. The state saw employment gains in industries like construction and professional and business services, indicating a robust job market.